The Trump Administration has released a $200bn hot list of Chinese goods to be hit with a 10% tariff ‘after a 2-month consultation period’.
This is not good news for emerging markets, and we are yet to hear what retaliatory measures China has up its sleeve. Speaking of Trump, the US President set off on his European adventure yesterday, where he’ll be meeting NATO leaders, British PM May and Russian President Putin (watch this space closely, or maybe just Twitter).
The rand is back over 13.40/$, and will struggle to claw back lost ground if there is no de-escalation in trade war rhetoric. Locally, struggling national carrier SAA announced that they had reached an agreement with the government to find an equity partner, which should lift the burden off state coffers. It’s England vs Croatia @ 20:00 tonight, enjoy!
All rates quoted are the interbank rates at time of publishing and shown for indicative purposes only. It is important to note that foreign exchange rates fluctuate and that the rates will vary depending on the amount and product purchased and sold.
*Commentary by Gareth Frye